The market is still overbought, and Cramer is 'still in sell mode.' But that could change

Published Tue, Jun 20 202311:37 AM EDT

Christopher Alessi @/in/christopher-alessi-78b9b09/@ChrisAAlessi

Every weekday the CNBC Investing Club with Jim Cramer holds a "Morning Meeting" livestream at 10:20 a.m. ET. Here's a recap of Tuesday's key moments. 'Still in sell mode' Stay bullish on Nvidia Watch Ford 1. 'Still in sell mode' Stocks started the holiday-shortened trading week under pressure Tuesday, even as technology companies continued to outperform. The weakness comes after the S & P 500 and the Nasdaq on Friday posted their biggest weekly gains since March . But with the market still in overbought territory, according to the S & P 500 Short Range Oscillator , Jim Cramer said Tuesday it's not too late for investors to trim some positions ahead of an expected pause in the recent rally. "I'm still in sell mode," he said. Meanwhile, the market is again focused on the Federal Reserve this week, with Chairman Jerome Powell set to begin two days of congressional testimony on Capitol Hill on Wednesday. 2. Stay bullish on Nvidia Evercore ISI on Tuesday raised its price target on artificial intelligence powerhouse Nvidia (NVDA) to $550 per share from $500.The firm also estimated the chipmaker could earn $30 per share by 2027, as data center workloads move from traditional architecture to accelerated servers. Jim said Tuesday that Nvidia's valuations often seem pricey at first, but in hindsight prove quite reasonable. "The rearview mirror is really kind to Nvidia," he said. Shares of the Club holding were trading mainly flat Tuesday morning at roughly $427 apiece. NVDA has nearly tripled year to date, setting an all-time high Friday. 3. Watch Ford Jim is in Dearborn, Michigan, Tuesday visiting Club holding Ford Motor (F). During a sit-down with CEO Jim Farley, the veteran auto executive reiterated to Jim that he still expects $6 billion in free cash flow for 2023, nearly double what Wall Street is predicting. "Who am I to doubt Jim Farley?" Jim said Tuesday. The Ford CEO also told Jim that the automaker is seeing demand outpace its product supply, forcing the company to ramp up manufacturing of electric vehicles. Ford stock, down more than 2% Tuesday, has surged more than 20% year-to-date. Jim's full interview with Farley will air on "Mad Money" Tuesday evening. (Jim Cramer's Charitable Trust is long NVDA, F. See here for a full list of the stocks.) As a subscriber to the CNBC Investing Club with Jim Cramer, you will receive a trade alert before Jim makes a trade. Jim waits 45 minutes after sending a trade alert before buying or selling a stock in his charitable trust's portfolio. If Jim has talked about a stock on CNBC TV, he waits 72 hours after issuing the trade alert before executing the trade. THE ABOVE INVESTING CLUB INFORMATION IS SUBJECT TO OUR TERMS AND CONDITIONS AND PRIVACY POLICY , TOGETHER WITH OUR DISCLAIMER . NO FIDUCIARY OBLIGATION OR DUTY EXISTS, OR IS CREATED, BY VIRTUE OF YOUR RECEIPT OF ANY INFORMATION PROVIDED IN CONNECTION WITH THE INVESTING CLUB. NO SPECIFIC OUTCOME OR PROFIT IS GUARANTEED.